Financing at a reduced price compared to ordinary loans not only offers car loans from dealer banks and many commercial banks, but also inexpensive official loans. These can also be used for vehicle financing and, contrary to their name, are not only available to civil servants.
Who receives an official loan for vehicle financing?
The product name civil servant loan does not mean that the discounted loans are only granted to civil servants or to judges and professional soldiers who are largely on an equal footing. Rather, banks generally grant official loans to all employees in the public service.
Most lenders have extended the range of possible borrowers for official loans and also offer these to employees if they have been with the current employer for several years.
Church officials and employees of the major religious communities are treated as civil servants and civil servants when granting loans. This group of people has particularly secure jobs, as it is impossible for employees to be given notice of dismissal and is made more difficult for employees in the public service and long-term employees in the private sector. The advantage of an official loan is an extremely low interest rate, including the option of taking out the loan over a particularly long period. Since the purpose of the loan does not have to be specified, the uncommitted official loan is also suitable for a car. In contrast to a special car loan, in this case there is no longer any need to hand over the vehicle registration document, nor is the security assignment of the financed car customary for vehicle loans.
Anyone who uses an official loan for a car often pays a lower interest rate than most commercial banks charge for car loans. Compared to a loan taken out through the dealer, the official loan is usually apparently somewhat more expensive, but the car buyer can act as a cash payer and negotiate a high discount on the vehicle price. Special offers from the dealer, such as the zero percent financing offered for some models, cannot beat the official loan for the car. However, these almost always apply only to poorly selling car models, which later also achieve poor used car prices.
Discounted auto loans for civil servants
Special auto loans for civil servants are even cheaper than using a civil servant loan to buy vehicles. In this case, the bank grants a price reduction for civil servants and equivalent persons as well as a discount for buying a car. The corresponding loans, like most car loans, involve the delivery of the vehicle letter to the bank and the usual security assignment. However, given the high discounts, only a few banks are offered a twice-discounted car loan for civil servants. In addition, unlike their usual civil servant loans, most lenders in this case actually limit lending to civil servants and civil servants, including the major religious communities.